Home Prices are Rising as Interest Rates Remain Low.
As many of us in the Baltimore real estate market know, COVID created a wild real estate market with many homes receiving multiple offers and selling above asking price as there has not been enough inventory of homes to meet the demand of buyers.
Some people decided, as they were working from home more, they needed more space. Others have children who are distance learning from home, either full or part time, again creating the need for space to work and learn. Some decided they wanted more outdoor space.
Add on the fact that rates have been incredibly low over the last few months, and we see this competitive market emerge.
MSN posted an article on the subject, showing that this trend is not just in Baltimore real estate, it is happening in many areas across the country.
I had been thinking that the rise in housing prices may offset any potential savings a homebuyer may benefit from with the lower interest rates. Per the MSN article, “… record-low mortgage rates have led to a 6.9% increase in homebuyer purchasing power, allowing the average buyer to afford about $33,000 more home than a year ago. But rising home prices, which jumped 8.2% for the same period, are “effectively cancelling out” those benefits.” The article seems to indicate my thoughts are proving to be true.
Prices are still often affordable for many Baltimore homebuyers, so don’t let the information above stop you if you want to buy a home right now. There are ways to be prepared and put your best foot forward in order to try to win in a multiple contract situation.
If you are considering buying a home in Towson, Timonium, or Baltimore real estate area, please contact me. I would love to be of assistance!